Ctrip.Com International (NASDAQ: CTRP) and The Priceline Group (NASDAQ:PCLN) are both large-cap cyclical consumer goods & services companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, risk, profitability, institutional ownership and earnings.

Analyst Ratings

This is a summary of current ratings for Ctrip.Com International and The Priceline Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ctrip.Com International 0 2 11 0 2.85
The Priceline Group 0 7 23 0 2.77

Ctrip.Com International presently has a consensus price target of $57.40, suggesting a potential upside of 23.92%. The Priceline Group has a consensus price target of $2,012.85, suggesting a potential upside of 15.99%. Given Ctrip.Com International’s stronger consensus rating and higher possible upside, research analysts clearly believe Ctrip.Com International is more favorable than The Priceline Group.

Profitability

This table compares Ctrip.Com International and The Priceline Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ctrip.Com International 8.92% 2.92% 1.51%
The Priceline Group 29.20% 33.02% 16.35%

Insider and Institutional Ownership

68.5% of Ctrip.Com International shares are owned by institutional investors. Comparatively, 94.3% of The Priceline Group shares are owned by institutional investors. 23.0% of Ctrip.Com International shares are owned by company insiders. Comparatively, 0.2% of The Priceline Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Ctrip.Com International and The Priceline Group’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ctrip.Com International $2.85 billion 8.34 -$206.06 million $0.60 77.20
The Priceline Group $10.74 billion 7.88 $2.13 billion $71.37 24.31

The Priceline Group has higher revenue and earnings than Ctrip.Com International. The Priceline Group is trading at a lower price-to-earnings ratio than Ctrip.Com International, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Ctrip.Com International has a beta of 1.78, meaning that its share price is 78% more volatile than the S&P 500. Comparatively, The Priceline Group has a beta of 1.43, meaning that its share price is 43% more volatile than the S&P 500.

Summary

The Priceline Group beats Ctrip.Com International on 8 of the 14 factors compared between the two stocks.

About Ctrip.Com International

Ctrip.com International, Ltd. (Ctrip) is a travel service provider for accommodation reservation, transportation ticketing, packaged tours and corporate travel management in China. The Company aggregates hotel and transportation information to enable business and leisure travelers to make bookings. It helps leisure travelers book tour packages and guided tours, and helps corporate clients manage their travel requirements. In addition, it offers a range of other travel-related services, including travelers’ reviews, attraction tickets, travel-related financing and car services, and travel insurance and visa services to meet the various booking and travelling needs of both leisure and business travelers. It also offers independent leisure travelers bundled packaged-tour products, including group tours, semi-group tours and private tours or packaged tours with different transportation arrangements, such as cruise, bus or self-driving.

About The Priceline Group

The Priceline Group Inc. is a provider of travel and restaurant online reservation and related services. The Company, through its online travel companies (OTCs), connects consumers wishing to make travel reservations with providers of travel services across the world. It offers consumers an array of accommodation reservations (including hotels, bed and breakfasts, hostels, apartments, vacation rentals and other properties) through its Booking.com, priceline.com and agoda.com brands. Its other brands include KAYAK, Rentalcars.com and OpenTable, Inc. (OpenTable). As of December 31, 2016, Booking.com offered accommodation reservation services for over 1,115,000 properties in over 220 countries and territories on its various Websites and in over 40 languages, which included over 568,000 vacation rental properties (updated property counts were available on the Booking.com Website).

Receive News & Stock Ratings for Ctrip.Com International Ltd Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Ctrip.Com International Ltd and related stocks with our FREE daily email newsletter.